HUL (Hindustan Unilever) announced recently that it intends to dramatically increase its rural distribution reach. The quality and quantity of rural coverage will go up to the extent that the company wants to achieve that in two years what it has done in the last 25 years, as per Harish Manwani, Chairman, HUL.
While over 45 per cent of HUL's sales come from rural markets, it reaches 2.5 lakh rural retail outlets approximately and intends to scale it up to nearly 7.5 lakh outlets in two years time.
The increase in rural coverage will be a big leap, “and to my mind will be a huge driver of future growth,” Manwani said. “There's no direct benefit in a year but over the course of the next year we will create that, what I call the next gap between us and our competition, and while competitors are closing gaps, we have to continuously create new gaps.”